GameFly Notches Win in Postal Fight over Mailings

GameFly Inc. scored a victory Friday in an ongoing dispute with the U.S. Postal Service over how it handles the video-game rental company’s mailings.

The firm claims that the Postal Service gives preferential treatment to DVD rental company Netflix by hand sorting its mailings, instead of running the DVDs through an automated mail processing system, which can damage the discs. As a result, Netflix is able to send its DVDs at the first-class mailing rate.

GameFly alleges it hasn’t been given the same treatment, so it has had to find workarounds to better protect its video-game discs. But the workarounds cost more than double what Netflix pays per disc, the company says.